But he doesn't see either issue gaining momentum until after the Assembly elections in November.

Developing a tax on hospitals -- prompted by the June 25 court ruling that Morristown Medical Center should pay property taxes on most of its 40-acre property -- is likely the easier challenge, Sweeney said during an editorial board meeting at The Star-Ledger.

"We absolutely will work toward moving it, at least in the Senate," said Sweeney (D-Gloucester), adding that the hospitals "have not been fair."

Hospital leaders at Barnabas Health and Cooper University Hospital said after the tax court ruling that the communities hosting them deserve financial assistance. And Morristown officials and hospital executives are negotiating a cash settlement that could be as much as $2.5 million to $3 million a year.

Tax Court Judge Vito Bianco ruled the Morristown hospital failed to meet the legal test that it operated as a non-profit, charitable organization for the tax years 2006 through 2008. The ruling applies only to the hospital's property taxes, not to its federal tax status as a non-profit entity.

The ruling noted that President and CEO Joseph Trunfio, who recently retired, made more than $5 million in 2005 and other executives made well more than $500,000 a year during the period under review. Today's non-profit hospitals, he said, generate "significant revenue and pay their professionals salaries that are competitive even by for-profit standards," according to Bianco's ruling.

Hospital systems in New Jersey are only growing larger since the passage of the Affordable Care Act fueled a flurry of mergers. The landmark health law relies on Medicare funds - largely derived from hospital reimbursement - discourages inpatient care, and financially rewards hospitals that practice preventive medicine from outpatient facilities.

Sweeney said he agreed with the ruling. Proposed legislation under review include a payment in lieu of taxes, payment based on a percentage of revenues, or a straight up property tax, he said.

"We are going to work towards a ... fair solution. We are not looking to put them out of business. But they are going to participate and share in the communities like other businesses. They are not nonprofits anymore," he said.

Sweeney said he expects some resistance from hospitals, but shrugged it off, saying, "We are not going to listen. They know it's coming."

"We are absolutely moving -- at least in the Senate -- in the direction of finding a solution. I would love to have it done in lame duck," he added, referring to the final weeks in the session when the pressures of an election have passed.

Betsy Ryan, president and CEO of the New Jersey Hospital Association, said her organization is doing a lot of research on the options.

"We've heard from several legislators with different proposals. We haven't yet taken a position on any of them," Ryan said. "This is a very complex issue, and the implications are great."

"We're also looking into what this could mean for hospitals in the bond market, as well as trying to get a much more complete picture of what hospitals" already contribute to communities, Ryan added.

"Bottom line is, we want to have as much information as possible so we can avoid unintended consequences. We do very much want to work collaboratively with the Senate President and other leaders on this issue," Ryan said.

Sweeney said the paid sick leave bill will be a much heavier lift. The measure remains stymied because of a disagreement between Senate and Assembly Democratic leaders over how it should work.

"We've talked and we are both pretty strongly in our own camps. So hopefully we can get beyond that," said Sweeney.

The Senate version of the bill would set a statewide paid sick leave standard and prevent municipalities from enacting stricter ordinance. Already, nine New Jersey towns have, though they would be grandfathered in under the Senate version.

State Assembly Speaker Vincent Prieto (D-Hudson), however, has not agreed with the changes, which are opposed by the union-backed group that has spearheaded the paid sick leave effort around the state, The New Jersey Working Families Alliance.

"I feel strongly about having a statewide standard. I'm not looking to repeal what any community did, but I will not support 565 different standards. It's bad for business," said Sweeney. "Hopefully we can come to agreement with the Assembly. They feel strongly letting everyone set their own, and I gotta tell ya, I don't agree."

Sweeney said this, too, would be legislation he would look to wrap up before the new two-year legislative session begins in January. But for practical reasons he doesn't feel the same urgency on paid sick leave as he does on the hospital taxation issue.

"The governor is never signing this," he said, referring to Gov. Chris Christie who is running for the Republican nomination for president. If the legislature did pass it, "It would be a statement we are focused on it for the next administration as something we would look to get done."